Adam John Wilkins, 41, denies drug charges in Tamworth court after police allegedly uncovered laboratory in Lemon Gums Drive home, Oxley Vale

Adam John Wilkins, 41, is on strict bail and did not appear in Tamworth Local Court on Monday when his Legal Aid solicitor Wendy McAuliffe told the court he pleaded not guilty to the five drug allegations.

Oxley Detective Inspector Jason Darcy told the Leader police raided a home on Lemon Gums Drive in Oxley Vale just before 10am on Friday.

The search allegedly revealed a dimethyltryptamine laboratory, large cacti cuttings, cannabis plants and items consistent with the supply and manufacture of prohibited drugs.

Police were forced to stop and call in specialists to ensure the scene was safe due to "volatile chemicals" and the "toxic nature" of what they allegedly found, Detective Inspector Darcy said.

NSW Fire and Rescue and HAZMAT were called while the specialist squad of chemical operations police examined and dismantled the alleged laboratory.

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Wilkins was arrested at the home and taken to Tamworth Police Station before he was granted bail on Saturday.

The operation at the home continued into the weekend and everything seized will be forensically examined.

Wilkins faces two counts of supplying prohibited drugs as well as cultivating a prohibited plant, possessing a prohibited plant, and manufacturing a prohibited drug.

Magistrate Mark Richardson ordered police to compile a brief of evidence ahead of the next court mention in April. He agreed to tighten Wilkins' bail conditions so his overnight curfew can be enforced by police.

Detective Inspector Darcy said investigations into the manufacture and supply of illegal drugs in Tamworth were very much continuing.

"If people have the confidence to pass on the information we will act on it promptly," he said.

"We rely on information from the community."

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